sometimes the project you were "born to make" comes along at inopportune moments. like before you've finished the film you had already started... but if a project absolutely rings true in your heart and mind, then you don't really have a choice but to go forward with the new thing. (that was certainly the case with me.)
from what we've read before, it sounds like KNOWING EVIL might be able to wait. but only you know best... if you do go forward with this new project, make sure that you have a current story to tell, rather than simply rehashing the history of how the Artist's Village was created. as you said, there are hidden stories everywhere. go find 'em!
and no, it certainly doesn't sound like you have to be "in" the film.